Friday, April 20, 2012

SENSEX:finally SENSEX has given a close above one of the
important resistance level 17436 was a LOW of an earlier BEARISH GAP day so
that GAP hurdle was proving as a strong resistance

SENSEX needs to remain above 17436 for one more day at least
and it would be a better confirmation of stronger bottom around 17000 if SENSEX
closes above 17667

Today being the time of a WEEKLY CLOSE if SENSEX closes
above 17667 today it would also be a good weekly close.

NIFTY:5306 was the STRONG RESISTANCE level and today once
NIFTY crossed that 5306 level even in intraday corrections it was not going
below 5306 as in intraday down moves NIFTY was supported by PHARMA AUTO &
FMCG stocks

A strong close above 5338 today will be a good close on
weekly basis too.

Our special TECHNICAL COVERAGE of different sectors in
January 2012 has been proven very much on track as stocks like TATA
MOTORS/RANBAXY/ITC/HUL/DIVIS LAB/DR. REDDYS/VIVIMED LABS etc have remained very strong PERFORMERS as in that report we
clearly said to buy these three sector stocks on every dip.

A weekly close above 5306-5338 will be very good as NIFTY is
also forming a BULLISH ENGULFING candle reversal pattern on weekly charts.

Monday, April 2, 2012

I did not have much to write about SENSEX & NIFTY in my
last weekly report BUT the crux was WEAKNESS

Although I wrote very clearly that a CLOSE below 5177 will
extend the weakness which luckily did not happen during the whole weak

Till FRIDAY last there was weakness alright BUT SENSEX was
somehow not breaching 17003 and NIFTY was not closing below 5171

During the week the LEVEL OF RESISTANCE came down from 5342
to 5312 and then 5242 and on Thursday BOTH SENSEX & NIFTY breached those
important supports at 17003 and 5171 but once again both closed just above
them.

Adding to this clue I found a very interesting and VERY
POSITIVE PRICE PATTERN CALLED “FALLING WEDGE” and in TECHNICAL VIEW for FRIDAY
I had said it will be very positive if NIFTY closes above 5220-5242 levels.

Indeed a VERY STRONG CLOSE on Friday CONVERTING THE WEEKLY
CHART PATTERN AS A “ LONG LEGGED DOJI “ and maintaining a good BULL CANDLE as
on QUARTERLY CHART too.

So WHAT NEXT ?

This is important BREAK OUT of a FALLING WEDGE pattern and
this means that the DOWN MOVE from 5499 to 5131 has ended

There is also a very strong possibility that ONE LARGER
A-B-C has also ended at 5131 first A leg was 5630-5171 second B was up from
5171-5499 third C was down from 5499-5131

In the NEXT week watch out 5342 and 5460 because if we get a
close above these two TARGETS then NIFTY will enter a STRONG BULL PHASE again
and will touch 5531-5649 or even higher.

STOP & REVERSE : A CLOSE BELOW 5171.

we use multi time frame charts to analyse
markets very frequently and it may seem that ONE DAY BULLISH market has turned
views from bearish to bullish very suddenly but the fact is that since last
Friday was not only the week end but was the last day of the month &
quarter as well so even on weekly chart we have a probable candle reversal
pattern called LONG LEGGED DOJI and on QUARTERLY CHART we have a STRONG BULL
CANDLE maintained with the 2% rally on last day.